Kentucky Accident Blog

One of the many confusing parts of buying car insurance is the terminology. Some terms appear to be self explanatory but actually mean something entirely different. The terms No-Fault Insurance, Basic Reparations Benefits and Personal Injury Protection (PIP) are different terms for essentially the same type of coverage.

No-Fault Insurance is one of the confusing terms. No-Fault means that your insurance company will pay your medical bills and lost wages when you are in an accident, even if it is your fault The state of Kentucky is one of 12 states and Puerto Rico that have no-fault auto insurance laws. Three of these states, New Jersey, Pennsylvania and Kentucky have a "choice" no-fault law.. A person must fill out a No-Fault rejection form and file it with the Kentucky Transportation Cabinet. The reasoning behind the No-Fault Coverage is to allow the the person injured in an automobile accident the confidence in knowing their medical bills will be paid promptly in the event of an injury accident. It will also allow them to choose the physician treating them. A person will be more willing to get the medical help they need if they are assured their bills will be paid and they can go to a doctor of their choosing.

Basic Reparation Benefits will cover the carrier if their accident occurs anywhere in the United States, its territories or Canada. There are some exceptions to these benefits, for example they do not cover mopeds, farm or construction vehicles. Motorcycles will be covered but the benefits have to be purchased specifically for that motorcycle.

PIP benefits, also called Basic Reparation Benefits, have a standard amount of benefits to be paid in Kentucky. The amount of $10,000.00 will cover medical expenses, work loss, replacement service loss, survivors economic loss and survivors replacement loss. For the most part this amount is used to pay for medical bills and lost wages. If the bill exceeds the $10,000.00 amount the carrier will have to pay these bills. Fortunately a good health insurance plan will help at this point.

The lost wages part can get tricky. The insurance company will pay 80% of lost wages up to $200.00 a week. If a person makes more than $200.00 a week they should ask their agent for information on Added Reparation Benefits. Another portion of this PIP coverage is that the $10,000.00 is for each individual in your vehicle at the time of the accident. If one person’s bills are less than the allowed amount the remainder cannot be transferred to another passenger.

As with all insurance policies there are exclusions. When in doubt, however slight, a person needs to ask questions of their agent. Keep asking until there is no more doubt. For more information on Louisville, Ky. attorney Mike Schafer go to www.mikeschaferlaw.com.